Global bridging of technology and capital
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Investment Strategy

Stage and Size of Investments

This is most simply described in the illustration below:

Stage and Size of Investments diagram

SpringHill invests principally in companies at an early stage of their development, and in firms seeking development capital.

‘Early stage’ spans start-up or spin out companies with exceptional intellectual property or market advantage, to those conducting research or field-testing on potential products or services that will secure a significant market-leading position.

‘Development’ stretches from firms optimizing products in anticipation of commercial launch right through to mature companies seeking funds to support a public listing, or indeed public companies requiring finance as part of a restructuring exercise or to support a major new corporate strategy (such as M&A).

Investment Philosophy

SpringHill’s investment philosophy is distinctive in a number of ways. The key principle that guides our approach to investing is to add value, in a number of distinct ways, to our investee companies. This can be achieved as follows:

We assist companies prepare for investment: Many early stage companies - sometimes just individual inventors or entrepreneurs - approach us without, for example, robust business plans or management teams. Most professional fund managers would simply turn such organizations away, because they are not ready for investment according to conventional guidelines. However, if SpringHill’s technical and market assessment of the commercial opportunity – and the intellectual property – is positive, SpringHill will help such companies get into a proper state of business readiness - devising the business plan or bringing in key staff, for example - such that an investment can take place.

We are experienced business builders: Following investment, young companies need to focus on delivering milestones within a finite budget and timeframe. Frequently, these objectives become obscured or delayed because of the need to establish basic infrastructure and policy for, inter alia, accounting; recruitment; and compensation policy. Rather than see young companies ‘reinvent the wheel’, we provide a mentoring service during this phase to expeditiously guide and consult on such matters. In some cases, the SpringHill team will also take over roles and responsibilities (by acting as a de facto Financial Director, for example) if need be. We also help recruit experienced management teams and non-executive Board members through our extensive network in the indusrty.

We actively drive corporate growth: Young companies need a significant range of external relationships to progress their businesses to commercialization and exit. They will need partners such as other investors, pharmaceutical companies, distribution partners, contract manufacturers, contract researchers, contract sales, lawyers, patent agents, brokers, accountants, and many more. SpringHill has an enormous network of such organizations that it has worked with over many years, and all over the world. We can do more, however, than just introduce them to our investees. The SpringHill team is able to make approaches and conduct negotiations with partners on behalf of the investee companies, raising investment funds and securing marketing deals, for example. This saves our investees time and money; but, more importantly, delivers significant value to shareholders.

We seek to be the lead investor and plan for follow on investments: We always assume that any investment we make will need follow on funding and plan for future funding rounds right from the start.

We are experts in East-West investments: The team has extensive experience in bridging technologies, marketing, manufacturing capabilities and private equity between East and West, due to its deep knowledge of both territories. As such, we can open up a whole new world of commercial opportunities to our investees, who would not ordinarily have the time, resource or knowledge to explore Asia . For example, we are constantly finding investors, distributors and contract service companies who can provide new sources of money, access to novel markets and low cost outsourcing opportunities, respectively.

  © SpringHill 2005